Today’s Notable Sentiment Shifts
AUD – The Australian dollar rallied on Tuesday after the RBA raised rates by more than expected and signalled further moves ahead, leading investors to wager on a faster tightening in the coming months.
The central bank announced a 25 basis point rate hike, taking the Cash Rate to 0.35%, versus consensus for a 15 basis point rate hike, which would have taken the Cash Rate to 0.25%.
Commenting on the announcement, NAB queried “does it mean that they will do 40 basis points in June, so we are up to 75 basis points? It is certainly possible. It looks like their narrative and the inflation forecasts that they’re hinting at comes across as fairly hawkish.”
The central bank announced a 25 basis point rate hike, taking the Cash Rate to 0.35%, versus consensus for a 15 basis point rate hike, which would have taken the Cash Rate to 0.25%.
Commenting on the announcement, NAB queried “does it mean that they will do 40 basis points in June, so we are up to 75 basis points? It is certainly possible. It looks like their narrative and the inflation forecasts that they’re hinting at comes across as fairly hawkish.”